DEAL IN THE WORKS...NEED HELP WITH SPECIFICS - Posted by Tobe (ID)

Real Estate Investing
1

Posted by Nick on December 19, 1999 at 13:38:08:

Sorry, I didn’t mean that the spread was too small. I meant that with the closing costs there may not be anything left to take home; but I wish you the best.

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DEAL IN THE WORKS…NEED HELP WITH SPECIFICS - Posted by Tobe (ID)

Posted by Tobe (ID) on December 18, 1999 at 19:03:11:

Hi all,

Need help with an assumption deal. The loan is one of those assumable FHA loans you have to qualify for. (Doesn’t make a lot of sense…) Anyway, the loan balance is $104,500 and the property was listed for $114,900. I offered $108,000 and it was accepted. The seller is very motivated to sell. He is getting married in March and wants to close before then. Should I try to close and then resell or just put it under contract and find a buyer to do a simultaneous close? I’m not real comfortable with a simultaneous closing…I don’t even know if anyone (Title Company) will do it. Then again, I don’t know if I can qualify for that type of loan. I already live in a single family home. I always thought FHA only dealt with first time home buyers. Can someone please help me out?

Thanks in advance,

Tobe

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Re: DEAL IN THE WORKS…NEED HELP WITH SPECIFICS - Posted by Nick

Posted by Nick on December 19, 1999 at 24:02:07:

I’m just a newbie, so what I say shouldn’t be taken as gospel; but the “first time buyer” is just one part of the HUD program.

As far as I’ve been told, you could assume as many HUD loans as you can manage. Qualification is on a one at a time basis.

Simultaneous closings are more frequent that you might think. The bigger title companies are more familiar with them than the smaller ones are, obviously because they do more closings, and their percentage of simultaneous closings translates into a greater number of them.

With only about $7k in equity, I don’t know what you expect to net if you flip it, but good luck.

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Re: DEAL IN THE WORKS…NEED HELP WITH SPECIFICS - Posted by Tobe (ID)

Posted by Tobe (ID) on December 19, 1999 at 13:31:23:

I realize $7,000 seems like a tight spread, but I would be happy to net $1,000 off this deal. Even $500!! You see, I’m not after the money so much as the pride of knowing this is something I can do. I’ll accept any profit as long as I can get that elusive “first deal” under my belt.

Thanks for your input.

Tobe